With improving consumer conditions, the industry has returned to growth, particularly with the success of its higher-value products
New York, NY (PRWEB) April 09, 2015
In the five years to 2015, IBISWorld estimates that revenue for the Barbecue and Grill Manufacturing industry will increase, despite higher growth in 2015. Over the five-year period, industry growth has been steady with the exception of 2011. Initially, the lingering effects of the housing market collapse resulted in weak economic recovery early in the period. Poor residential construction markets were reinforced by poor consumer sentiment, which further diminished housing starts and private spending on home improvements. Ultimately, industry revenue fell in this first year. With improving consumer conditions, the Barbecue and Grill Manufacturing industry has returned to growth, particularly with the success of its higher-value products. According to IBISWorld Industry Analyst Edward Rivera, “the trend towards more expensive and advanced barbecues and grills has allowed industry operators to widen their profit margins and combat increasing competition from imports.”
Prior to the recession, the industry benefited from a strong housing market, which caused many consumers to spend money on outdoor kitchens. The recession, however, significantly slowed demand for high-end grills in favor of more affordable imports. Furthermore, many consumers who were forced to downsize houses switched to more compact grills. “Unfortunately for domestic manufacturers, growth in the number of inexpensive imports has eaten into the domestic market over the past decade,” says Rivera.
In the five years to 2020, IBISWorld estimates that industry revenue will increase. Over the next five years, the industry will benefit from an increase in per capita disposable income and the continued recovery of the residential construction market. Furthermore, demand for high-end, domestically produced grills is expected to fend off growing imports and drive growth over the next five years. As a result, imports will continue to increase in value; however, their proportion of domestic demand is expected to decrease over the next five years.
For more information, visit IBISWorld’s Barbecue and Grill Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
The Barbecue and Grill Manufacturing industry comprises establishments that manufacture barbecue and grilling equipment, including gas and solid fuel barbecues, grills and braziers as well as parts and accessories. Other outdoor cooking equipment, like outdoor stoves, are excluded from this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
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